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tv   Squawk Alley  CNBC  November 30, 2015 11:00am-12:01pm EST

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good morning. it is 8:00 a.m. at amazon headquarters in seattle. it is 11:00 a.m. on wall street. and "squawk alley" is live. ♪ i broke down the chairs ♪ i broke down the tables ♪ i'm trying to find ♪ they call me the seeker welcome to "squawk alley"
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for a monday morning. here at post nine on a day where we're going to put the month of november to bed. first up, sue herrera has news at hq. >> going to try it again. will file for an ipo according to sources quoted on dow jones for 2016. that ipo will go off the board apparently. the valuation of the exchange operator, more than $2 billion. you might recall the first attempt by bats to ipo was in 2012 but it was derailed because of a software glitch. they're going to try it again some time in 2016. $2 billion is the estimate on the exchange valuation and they're expected to file the prospectus as early as september. >> joining us this morning from palo alto, the co-founder of elevation partners, roger, good to see you. >> always great to be here. >> the cyber monday. the new normal for holiday
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shopping. the survey found that more people shopped online than in stores other the weekend. accord to adobe, people spent $4 billion online thursday and friday. up 14% year on year. after a more than 20-minute outage, target website slowly coming back online today. for some customers, an error message still reads, so sear, but high traffic is causing delays. roger, i want some big picture about where you think we are in this migration to online, this my brace to mobile. >> so the first thing to keep in mind is that whenever you're trying to understand whether we're going to have a good christmas season or bad one at retail, there's one indicator that tells you more than anything else. and that is total employment. so right now, we have the lowest level of unemployment we've had in eight years. you would expect to have a at least good christmas for retailers if not better than that. obviously, when you go one level down, there's a huge shift
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taking place. the transition first to online but more particularly to mobile has obviously caught at least some retailers off guard. so some are much better positioned than others. you've talked about walmart. you've talked about amazon having made huge commitments. were there others, particularly in the luxury and very low end categories which have not made that same commitment. i think there's some really important distinctions to keep in mind. one is that there are and always will be some people for whom going to stores is just fun. they like the retail experience. if you're buying clothing for example, there's really no substitute for going into a store. so there's going to be some categories that are more or less affected by this. at the high end in particular where people have really nice smart phones and where their time is very valuable to them and -- you're going to see i think a more rapid migration. i think there's some retailers,
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tiff any in particular, which hs a terrific online competitor in blue nile is having an issue that may not be fixable without radically altering their approach. >> it's almost like you have to be rhonda rousy to enjoy the holiday shopping season. it's like an episode of maury. the brawls breaking out. it's starting to feel like a very low-rent experience to actually go out to the store. certainly not something you want to take your kids to. at the same time, you see adobe is saying we're on track for $3 billion in sales for cyber monday, the first time, again, up 14% compared to last year. as thursday and friday were. are we in the midst of just a cultural shift towards shopping online more and more, for more and more thing, whether a drone delivers it or not? >> well, i think that is correct. but at the same time, you know, let's not forget that part of what happened on black friday is the stores are try to stimulate
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ridiculous levels of traffic. so they have these incredible bargains. for people whose income is limited, there's really no substitute. there's no alternative to making that transaction. and many of those people may not have a smart phone that allows them to get the same deal online. so i don't think black friday goes away completely as an idea. at least not as long as there are detailers who want to play to that. candidly, i think some people go there for that scrum-like experience, the same people who think it's fun to watch a football game in the snow in january. it takes all kinds. i look at this and i think you're right, there's a huge change taking place within the numbers. and there's going to be winners and losers. obviously, amazon and walmart are better positioned than companies, like, target. it's going to play out over time.
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i don't think it's going to be a black and white thing. the most important new thing is we're at full employment or at least very near full employment. as a consequence, retailers in general are going to have a good christmas. they may scream and yell and complain between here and christmas but overall, the numbers are going to be fine. the other question is the winners and losers. this year, there are going to be greater gaps within the retailing community than we've had in some years past. >> speaking of which, 4,000 full-time emplemployees coverina space as large as 20 football field, the action of one amazon fulfillment center in new jersey. our courtney reagan is there. >> trying to sum up cyber monday, i can say at least target is having a strong cyber monday or they were. the website went offline at least intermittently for some of its users. at amazon, the company expects today will be a record day.
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this is even after black friday topped last year's results as far as units sold. but that may not be the case for every retailer. for some, cyber monday has begun to lose some momentum. as those lines between shopping events. the national retail shopping federation says 57% of americans began their shopping before november 10th. that's the highest number ever recorded by the group. leaving cyber monday largely an afterthought for many of those nonprocrastinators with 50% saying they're shopping online. still expects 121 million americans to shop today, but that is below last year's number. here at amazon, the pep talks started early for this morning for the more than 4,000 workers that are picking and packing orders traveling along 14 miles of conveyer belts before getting to the loading dock and out the door for delivery. a mix of products from
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headphones to pillows to men's dress shirts. when talking on social media, ebay is dominating. topics being talked about is actual products. it seems most of the conversation on twitter about amazon is coming from that drone delivery video, develops from the media's look inside centers like this one. >> amazon did show off this new prototype. the first new model seen in about two years. it can fly 15 mile, reach an altitude of about 400 feet, but everyone still wondering when we'll actually see one in action. amazon did say on its website, quote, we will deploy when we have the regulatory support needed to realize our vision. roger, would it surprise you to see this delivering commerce, what, a year from now, five years from now, what? >> a year from now what surprise me a lot. five years would not surprise me
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at all. to me, i think there's more going on here than just regulatory approvals. if you think through a 15-mile range, what that implies is they're going to only be able to offer this in relatively limited areas and they'll have to have a lot of control centers. you have a set of questions relative to cost. for example, how many drones can a single pilot manage at a time? what are the logistics of getting the product into the drone? because the delivery cost of these things may be quite significant. so there may be certain classes of products like pharmaceuticalings where it's a no brainer. and other categories of things where it really doesn't make sense at all. so i think amazon has a lot of issues to work out here. i'm personally rather excited about it. i'm terrified of the notion of hundreds of 50-pound drones flying over my head all the time. but, you know, life is full of that kind of adventure and i guess we're going to find out over the next couple years.
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>> especially since they say these are headed towards back yards. that is where this fight will play out. it's interesting because we talk about employment and we have these juxtaposing images of an amazon fulfillment center with thousands of employees and then of a single drone delivering a package with perhaps a pilot on the other side but noticeably less human interaction. what is the overall effect on employment from these new technologies and the changing retail landscape, even though for now it seems to be holding intact? >> my assumption on this, this will be an incremental delivery platform that doesn't substitute for anything we see today. 15-mile delivery, this is not an overnight thing. this is something you're going to order now for delivery, you know, an hour or two from now. for most of the country, that will be a brand-new service from amazon. so i think it will take a long time to have an impact on employment either way.
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i think the really fun stuff to think about is what happens when the basset hound in the backyard sees the drone coming in and decides it needs to defend its turf. the logistical issues -- it's going to be pretty entertaining. it's going to be pretty entertaining to watch. you know -- >> when i look at this video, i see perhaps the future of lobbying. we ought to keep in mind, this is not a product that amazon is selling. it's not a product that it's using right now to deliver products. because it can't -- it put this out for the broader public to rally support behind its agenda. i mean, that's really interesting. how often have we seen that? this is amazon propaganda. >> well, it's amazon doing the same thing that uber did before it, right, which is -- that's a really insightful point because at the end of the day without someone of amazon's scale promoting droe ining drones fori would think the regulatory
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inertia would stop the thing for decades. amazon has a lot of resources. has some influence in washington. they obviously are very determined to get this done. so it's i presume something is going to happen. i just wonder what it's going to look like when it's done because i'm not even sure amazon knows, but i can't wait to find out. >> no coincidence. i'm sure they're putting this out on their busiest day of the year when everybody's ordering amazon packages and wondering when they're going to get here. >> they're definitely going hostile on this bid. it's good to see you, roger. we'll talk to you soon. >> always a pleasure. >> we do want to get a check in on the markets. the dow has just gone back into positive territory. it started there earlier in the day, but on a slew of some disappointing data, namely chicago pie.
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and the talk of potentially tepid holiday sales for the retailers. the s&p 500 and the nasdaq are still there, but they're all still trending positive. microsoft is in the green after getting upgraded to strong buy at raymond james. the first saying it looked for a while that the company perhaps missed mobile but is now well positioned in the clourd going forward, and that is enough to bring microsoft shares up. fit bit rallying after being upgraded to overweight by barclays. the firm says fit bit is a proven company and the recent slide in the stock is what it called unjustified. tis the season for some fit bit givers. >> we'll see. like john's -- when we come back, we'll find out how people are spending, so far, this holiday season from a leader in
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mobile payments. plus, a closer look at the top gifts in tech this weekend. what 116 million people in ebay are shopping for. and it's backed by big names like eric schmidt, barry diller. we're live with the company being called the uber for helicopter when "squawk alley" continues. the throttleuldn't push on his little boat any harder if he tried. he's beached here, gazing out on an unforgiving landscape. for while the people who come in here use quilted northern, a toilet paper that works so well they completely forget their experience... daddy gator sees all and forgets nothing. "i've got to motor out of here," he thinks. "this is no place to raise a child." quilted northern. designed to be forgotten.
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the payment space is
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expanding with the likes of android pay leading the pack. are mobile payments really catching on with consumers especially during this holiday shopping season? joining us is gary norcross. who better to have to talk about this because you actually provide the infrastructure for retailers, for banks, for small businesses. what did you see this past weekend? >> first, thank you for having me back on. it was a busy weekend for us. these transition volumes are spreading across just black friday. we're seeing early shopping. we're seeing it throughout the holiday season. >> we're hearing people talk about getting frustrated with the transition to chip cards, the waits in line are too long. is that real or is that just the natural griping?
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>> you'll see some people being confused with the new technologies as it rolls out but frankly we're seeing good results from these rollouts and we're seeing these options. >> what impact are you seeing from the rollout of apple pay and all its cousins across other platforms? you settle more than $1 trillion a year in transactions. you surely would have insight into that. is that the thanksgiving phenomena when you're not at your computer but you're coming down off the turkey, you're able to make a purchase? where are you seeing it? >> we're seeing good strong adoption across all the channels. so anything that generates a transaction's positive. whether it comes through apple pay, point of sales, some other online medium, we're excited about anything that creates transaction volumes to the card. >> what big needs to be done
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now? what are you trying to get tipped over the ledge? as we have a lot of this into consumer's mind-set? >> we just successfully closed our sun guard acquisition today, more than a $9 million transacti transaction. as you guys know we're the leader not only in core bank processing but retail payments. this moves us into capital management wealth manager. we're excited about that combination as we grow. now makes 25% of our revenue offshore which get us in high-growth markets. we're going to be focused on the short term on getting in on the transaction, making sure we get our costs out, make sure we serve our clients and accelerate our growth. >> i know you've been focused on this but you said in the last conference call that the macro environment is difficult, it's challenging. i'm wondering what about it is challenging when you have a large scale cyber security breach largely out of the conversation this year and
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consumers more willing to spend? >> we're seeing good results in our u.s.-based business, but we're starting to see some macro trends. we're one of the largest third party processors of payments in brazil, but we're seeing good strong growth in asia to offset that. seeing kind of mild to medium growth, you know, throughout europe. in the u.s., in the large bank market, in some of our professional services sets, where we have personal bank business, we're seeing some head winds related around customization of some software, but all in all we're very bullish on u.s. markets and what we have going on abroad as well. >> i know you'll be busy for the next few weeks for sure. >> i think this one will take a little more than a couple of weeks. gary nor cross, the ceo of fis. >> next, the must have items on this holiday weekend.
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pretty decent start to the week in europe. simon's back at post nine to wrap up the trading day. >> the big news during the course of the week is that ecb meeting on thursday. stocks actually hit in europe a 3, 3 1/2-month high in advance of that. expectations are running really high. virtually everybody's put out a report this morning on what they expect from the ecb. clearly the euro has been shifting. you've had one hell of a move as we close out now november for european stocks. a loss of 4% on the euro. against the u.s. dollar. as the two central banks move in the opposite direction. the yields, the spreads between the rates basically reaches a decade high. let me get you through exactly what people are suggesting we will get from the ecb on thursday. and bear in mind the huge possibility of disappointment here. the ecb has so stoked the pots, it's really going to have to deliver. the belief is they will increase the intensity of buying. they will lengthen the duration
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of the buying beyond september of next year. and maybe diversify the list of what they can buy. has even suggested they might signal they'll abandon the set percentage of buying in each country what we call the capital key. most importantly, they will cut the deposit rate below the existing minus 0.2%. that's important because they said they can't buy bonds below that deposit rate. as they lower and lower that level, more bonds become available to buy. currently, because this huge rally we've had on the bond market in europe, you've got about one-third of eurozone bonds that currently trade beyond that benchmark. so lowering it makes them eligible for buying. which is why they've driven the yield down because they think the ecb will come in behind and buy them. one of the top gainers we have in europe today is volkswagen which is up now 5%. they basically come forward with a prototype of how they might deal with their problem in europe with the german transport
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ministry. that could be the prototype moving forward. the point here really is from the lows we had at the beginning of the crisis. we're now 44 euros higher. so beyond this talk here of how there might be a restructuring and volkswagen could face severe difficulties, those who bought at that point will have a 50% return on their investment. guys, back to you. >> took some nerve to buy down there. the new video, pretty entertaining, but it's more than just eye candy. he's with us in a moment to explain. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier.
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good morning, again, everyone. here's your cnbc news update. president obama calling the meeting of word leaders in paris a, quote, turning point, in the fight against climate change. in a speech earlier today, the president praised the people of paris for going ahead with the meeting despite the terror attacks in the city earlier this month. the first trial connected to the death of freddie gray. officer william porter is one of six baltimore officers facing charges. gray's death in april, while in police custody, sparked days of violent protests. severe weather being blamed for over a dozen deaths in parts of the plains.
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oklahoma has declared a state of emergency after severe rain caused icy road conditions and some flooding as well. and shoppers looking for cyber monday deals on target's website are running into trouble. the company says high volume is causing delays. the shoppers may see that white box, it's a dialogue box, before being able to access the site. lots of shopping going on, carl. >> indeed, sue, thank you very much. amazon showing off its latest delivery dome in this promotional clip for its prime air service. urging regulators to catch up with the technology, posting on its website, quote, we will deploy when we have the regulatory support needed to realize our vision. with us, john steinberg, the ceo at the daily mail north america. what did you think when you first saw this? >> it's great. most drone enthusiasts and
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experts now have moved to fixed wing in addition to vertical takeoff. better for greater distances. i think two years. >> for concentrated urban environments? >> no, i think suburban and rule delivery. the example in the video, which was basically a marketing stunt, no one's going to need shoes in an hour for their daughter's soccer game. this is for rural pharmaceutical deliveries, products of that nature. >> if there are pets, kids, lawn equipment, sports equipment, anywhere nearby, what happens? >> i mean, driving on the van wick to jfk is way more dangerous. i was watching homeland last night and there was some amazing drone usage in homeland. i think there are tons of these overhead we don't know about anyway. planes don't really crash out of the sky that often into urban areas. there's much less risk here than the risk you take day to day in your normal life. >> i don't drive on the van wick to jfk if i don't have to.
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it's interesting, how they set this up. the person who they had doing the presentation from the uk which has lighter drone regulation than the u.s. does. he makes this quick, about football, soccer. is this amazon pitting the uk against the u.s., saying they're going to get it first? >> that is an extraordinary conspiracy theory. my philosophy is nobody knows who he is. i get he's super expensive and amazon won and maybe they want mileage out of their dollars for him. they should have used jeffrey tambor. they could have done a funny shtick around it. i think a very poor choice in terms of the host. >> they're going to need a lot of pilots. >> yeah. >> you interested? >> i don't think they're necessarily -- i think a lot of the line of sight pilot restrictions will get lifted. and then these things will be able to fly outside of line of
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sight. i was thinking this morning, everyone of these extraordinary developments we've seen, they've all sieeemed inconceivable to u only a few years beforehand. i think these will be cruising in the sky within a few years. >> it's so interesting that it's companies pushing all of these innovations. >> yes. >> whether it's amazon on drones. you've got this group of billionaires that's pushing ideas around clean energy. i mean, is this the future that we get these huge personalities, your elan musks, your jeff bay yoss with your rockets and your drones? >> it's a counterconsequence of the internet. allowing people to organize and lobby for things, we're getting technologies. ub, as you mentioned earlier, has been effective at using grassroots lobbying to demand innovation from local municipalities. the only place it doesn't work is where the people who vote are
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not the people who want it. so people are going to see this. they used a very consumer example. they're going to push for it and going to get it. >> how much power does a company like amazon actually have to control its own story? you have jay carney posting directly on medium in response to "the new york times" article several months ago. you have the company opening up one clean, well-functioned fulfillment center for people to report from and then you have this video posted. >> i don't think this is quite controlling the story of the extent of using one facility. people can post their own videos whenever they want. celebrities can do it on twitter now too. you don't have to go through a long kind of back room washington lobby type of effort. say to consumers, you're ready to go, it's your legislators that will block it, do you want it, do you not want it. >> same discussion we'll have with self-driving cars -- >> >> i think all these things seem
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scary but the risks in daily life, crossing the street for example, have such a higher risk than drones hitting us. >> can you fly one of these or does this take a professional? >> i think i'd be able to fly one of these. the only difference is you're using kind of horizontal as opposed to vertical. i assume you'd be able to fly one of these. >> famous last words. >> you've hit someone with a drone before, have you not? >> yes, i have. >> there's a field. >> this is some example. look at how fast i'm going over a field. i could be delivering pharmaceuticals. >> i need some dram mean to watch this. >> good thing there's no pets in that field. >> it's wide open. this is the kind of area, the kind of rural area that somebody will be able to deliver into i guess. >> fascinating. john, thank you. meantime, there are nearly 160 million active buyers on ebay. so over the holiday weekend what tech toys were they busy purchasing? >> on black friday, what was the
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most have item? hover boards. ebay sold more than 5,000 of those self-balancing electric rides. as the holiday weekend unfolded what tech gadgets were the most popular? ebay provided cnbc with some exclusive data. here's what we found out. gamers were out in full force over the weekend. gaming consoles were very popular. especially ebay tells us microsoft's xbox one, as well as sony's playstation 4. there was that thanksgiving deal for the playstation 4 at around 289 bucks helping to boost demand. recently sony did announce it has already sold more than 30 million of its consoles. the fastest growth in that product's history. another huge winner, apple's iphone 6-s and 6-s-plus for sale unlocked meaning free from a carrier contract. there were deals for the 6-s with 16 gigabytes of storage for $619. apple sells them starting at
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$649. finally, we do know tablets as a category are under pressure. shipments falling 13% in q3. but demand for some tablets did remain strong. the top three, apple's ipad mini, the same sung galaxy tabb and amazon's kindle paper white. everything from ipads to the x-box one, we'll see what remains popular with consumers and what new must-have products will emerge. >> thank you very much. when we come back, last cyber monday was the biggest day in company history for online sports retailer fanatics. its ceo will tell us how this year is shaping up so far. we'll talk to rick santelli after the break. ♪ today, we're seeing new technologies make healthcare more personal
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coming up, morgan stanley's chief strategist joins us on where he sees stocks heading in 2016. plus, as questions swirl about its future, luluemon gets a downgrade today. and john hit the mall on black friday for a real look at where shoppers were spending and where they weren't. always fun when we send dr. j to the mall. >> not your traditional channel
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check, for sure. let's get to rick santelli. >> good morning. thank you. everybody of course is not only watching the fed and their december meeting coming up, but between now and then, friday's employment number is going to be big. whether it actually changes anything, whether really the threat of the logic of normalization is linked to dat data or not. when it comes to markets, policymakers, like fed balance sheets, like southern economies and the stockpile of securities. we do see that logic does reign through. case in point, a couple of charts. let's look at may through october. up to that october meeting on the didfference between 10-year note deals. it's something that is watched very closely.
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potentially the liquidity delivered or taken away by central banks. you see during that time period, it was all about 150. now let's go from that october meeting to present. look at this chart. now it's right about 175. a difference of 25 basis points. may through october, 150. we're looking for 25 basis points of tightening. 25 brings you to 175. actually makes perfect sense. here's another way many traders are trading what the fed will or will not do. you could trade fed funds. you could trade the euro dollars. you can trade front months, back months. but this is really a good one. some traders are using this as a bit of a hedge. thinking if it's one and done, 175 is going to be the issue. but if somehow something goes wrong, you could see us going
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back to that 150 level. this is another kind of third wheel so to speak in terms of playing that. also has a foreign exchange issue. let's say the one and done mentality melts away and let's say there is a normal situation or tightening on december 16th. what if the spread starts to go to 2%? not only does it give you an inclination of the differences between central banks and how that may play out, it's going to have a big issue if it goes to 200 base points for the dollar index. all right. we're going to go the 2s, okay? what i mean by 2s, whether it's too warm, too cold. weather's really an issue. when alice wallas here today discussing chicago pmi, she said one of the sub-themes was the weather is too warm, people aren't buying sweaters. one thing i can tell you, that whatever bucket or whatever quarter the buying of the sweater or the lack of buying because it's too cold occurs in, when you look at it over a time
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line of an entire year like gdp, the numbers are going to come through. so the weather issue really is a nonissue but it's certainly going to be a good excuse. remember, too warm, too cold, all's we're concerned about is whether it's sustainable and consistent even on an annualized gdp basis. >> all right, rick santelli in chicago. up next, we'll talk to the ceo of blade the helicopter company getting into aviation. the ceo will tell us where that company is heading. market is near lows of the days.
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aviation start-up blade has been busy shuttling new yorkers to the hamptons. they will now include private jets. he's now the founder and the ceo at blade. it's good to see you. welcome. we've done some stories on you and how you've become a bit of a phenomenon in the northeast, right? >> it's worked out really well. >> what's changed the game? >> well, the helicopters. i think we realized the average helicopter was only actually taking 1.7 passengers per helicopter. by taking the power of the crowd over mobile technology, analyzing their desires, when they want to fly.
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now the idea is to take that same technology, that user base, leverage them and create the on the ground experience that blade has become famous for in jets. both on the air -- in the air and on the ground with our lounges. >> they want to go to the hamptons, they want to go to nantuck nantucket. there are a pretty elite few that can afford this. i'm wondering how you grow, who's your new audience? >> the first order of business was to engage these 50,000 people that we had with our app from this summer. clearly this is something they do in the winter. but if you look at the price point of $22.50 which includes a helicopter taking you from manhattan where the only jet service, actually where you can leave from manhattan and get to your definition, from lounge to lounge where the experience begins, it's about the price of a first class ticket at the last minute. so it's actually a pretty good value. the first class travel is about a $6 billion business. private jets are about a $9
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billion business. this is really the white space between first class and charter jets. >> you don't own the helicopters, right? >> or the jets. >> so -- >> the nassau light model. >> you're profitable early on. how big is your potential audience? is the idea here to expand the number of people who are able to afford this kind of service or just take the people who can already afford the savervice an say, we'll get you a helicopter, a jet, maybe some services on those flights? >> no, the former. i have to tell you, you're more knowledgeable about this than probably any of this. the power of the crowd, of power of using mobile technology, to understand when people want to fly and using that for capacity utilization will lower the price of jet travel and helicopter travel as we have proven in new york, where the price can start as low as $395.
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75% of our travelers on helicopters have actually never flown in one before. we think we can do the same with private jets. >> that's an amazing stat. do you picture a route structure where it's l.a., san francisco, miami? >> i think for aaa markets, there's a real opportunity. i think you have to start strategically. you enhance the risk of your business as you expand. we're putting people in the air. we take this as an incredible opportunity. you cannot underestimate the lounge experience. on the ground experience. where we are working with them, helping them enjoy their flight, making it a nonintimidating experience. travel by helicopter or jet, that's intimidating. the average passenger for half an hour helicopter ride actually arrives at one of our lounges an hour ahead of time. we opened a new lounge in miami where you could actually have dinner before you get on your
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jet flight back to new york. >> is that going be to the volume business, bouncing from the airport home? >> excuse me? >> is that the volume business, bouncing from the airport, back home? >> that's already a busineig bus for us. we are really good at harmonizing a helicopter and jet. look at pain points. big pain point is leaving from new york city and getting to the airport. the pain point for a big travelers is not actually getting stress in the airport, it's getting in that car and not knowing when you're going to get there. our product blade bounce is $895 for an entire six-seat helicopter. you price is out for a black car for all six, it's probably cheaper. you can get one in 20 minutes without talking to a soul straight from your mobile phone. >> i know you don't appreciate the uber comparison, but is the goal to have uber buy this thing in five years? >> listen, uber's an incredible company. $80 billion valuation. it's an incredible -- what we're trying to do now is build a great company.
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make it so it works. keep that brand going. see where it takes us. >> it's good to see you. you'll come back, i hope. thank you very much. up next, cyber monday. is the biggest day in company history. at least it was last year for retailer fanatics. ceo is going to tell us how demand is looking this year when we come right back.
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millions of sports fans are snapping up team gear today. fanatics says they're processing 350 orders per minute. fanatics ceo doug mac joins us. is it tracking like today's going to be bigger than last cyber monday? >> it is. so far, so good. as you mentioned, last cyber monday was the biggest day in our company history, so we knew we had a huge hurdle to jump over today. while it's still very early, i'm starting to see double digit comps early in the day today. there's many important hours ahead. this is one really important day in an overall most important time of year for us. >> doug, you said that the sports crowd over indexes toward mobile. they're doing more buying on mobile. what are you seeing in terms of
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bitting patterns? the shopping basket size? how do you get people to buy not just stuff but a lot of stuff at once? >> yeah, the mobile story is unbelievable. feels like there's no ceiling to it. last week, the cyber week, mobile was bigger for us in both traffic and revenue than any week we've ever had for mobile. typically, we run around 45% of revenue as mobile while the industry's running sub.30%. last week on thanksgiving day, our mobile revenues went up over 60% open the day of thanksgiving. and to your point about driving transactions, a lot of that's been about preparing all year for this. faster browsing, making sure we've got really easy ability to locate merchandise and transact all the way through. we're definitely upper on all our performance and it's paying out in terms of the growth. >> how do you bridge the gap
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between wanting a deal that brings the new consumer to your site and giving away your product for free? what's the appropriate discount level? >> you know, you brought up one of the most important themes for holiday for us. we thought about looking at the holiday as a marathon, it's about the 50 days of holiday. and we're also looking at margins. even though we've been growing at a faster rate than industry reports on overall e-commerce shopping, we've done so at an increased margin year over year. our gross margins were up about 300 basis points. there's only one way to do that. we've eased off on promotion during this time of year. we've kept our shelves stocked very strongly. as we turn the corner to december. because december is the biggest month of the year for us. we want to be in really healthy condition. we don't want to have been in a position that we overdiscounted and that strategy's going very well. with that being said, today, cyber monday is the biggest day
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of the year. on, it's a 30% off sale. it will be our last biggest sale of the year. you'll see continued feathering of that down for the rest of the season. we see december is more about availability and speeded delivery is what wins the day then. >> we're in that beautiful season where you're just coming off baseball. you've got baseball. you've got football. you've got hockey. in the race for licensed team gear, which league's in first, which one's gaining? >> you know, right now, we're seeing many more micro trends. coming off cyber week, what was a really exciting story is actually the college business. our college business was very strong. there are lots of interesting rivalries in college football now. college baseball's perked up. we put a lot of work to enhancing our assortment. it's been incredible to see the results in the year over year comps. in other sports, we're seeing things like nhl hockey, the jersey business is strong right now. there's a couple of great
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stories going on in the nba right now with stef curry and the warriors along with big news from kobe yesterday. all leagues are pretty healthy right now for our business. we're driving a growth agenda for our league partners and our vendors and it's really coming to bear right now. >> literally what did you see when that headline crossed about kobe bryant's retirement? could you see it in the numbers as far as what people were buying on the site? >> it was incredible. we obviously didn't know that was coming either but we were prepared for it with lots of great kobe inventory. he immediately grew yesterday year over year 260% over sunday last year. it moved him up to the number two slot in overall nba sales, behind stef curry but ahead of lebron james and kevin durant and ultimately put him into the top ten of all athletes in terms of his sales. i think it's an evergreen trend, now we'll see kobe as a strong seller through the holiday season as well. >> all right, we'll see.
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doug mac, thanks for joining us, have a good rest of this cyber monday. love kobe's comments, i just don't want to do this anymore. as the knees must be hurting at the ripe old age of 37. we're keeping an eye on the news conference from the imf. if she begins to speak, we'll take that live. now, doug wapner and the half. >> all right, guys, thanks so much. let's meet our starting lineup. steve weiss is here along with josh brown and mike santoli, cnbc's markets commentator. call of the day, as speculation swirls about lululemo's future, one analyst live. adam parker is with us on where he sees stocks heading in 2016. we do begin though in retail as investors dig


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